Guggenheim Reiterates Neutral Rating on Unitil Corporation (UTL)

Guggenheim analyst Shahriar Pourreza reiterated a Neutral rating and $53.00 price target on Unitil Corporation (NYSE: UTL).

The analyst commented: "In a rather straightforward update despite the miss, UTL reported $0.00 3Q24 EPS results while mgmt appears confident that FY24 earnings will be within the LT guidance range (despite the miss). Earnings reflect higher distribution rates and customer growth, which are partially offset by higher utility operating costs. The company also reaffirmed its LT growth rate of 5%-7% (we model a 6.3% EPS CAGR for 2024-2028) – which is supported by a rate base growth of 6.5% to 8.5%. UTL’s capital spending remains at ~$910MM through 2028 (vs. Guggenheim at $911mm), with additional upside for electric sector modernization projects as the company invests in supporting clean energy. On the call, mgmt highlighted that they are seeing a shift in capital spend to electric from gas, which is particularly notable in Massachusetts, which could become multiple accretive in time. To that end and in our view, the company remains on track to achieve its FY24 EPS inline within its LT guidance range – We maintain NEUTRAL, $53 PT purely on valuation – UTL is a very strong story but shares already trade at a healthy premium vs. SMIDS and even larger cap peers."

For an analyst ratings summary and ratings history on Unitil Corporation click here. For more ratings news on Unitil Corporation click here.

Shares of Unitil Corporation closed at $56.76 yesterday.

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